MI state exam practice exam
After accepting an offer in writing, if a seller withdraws acceptance and cancels the transaction, which of
the following is TRUE? - correct answer The broker, having facilitated a written
acceptance of an offer, is entitled to compensation and may sue the seller for the commission.
A realty company has entered agency agreements with both the sellers and the buyers in the
transaction of a property. Is this allowable? - correct answer Yes, as long as both
parties agree in writing to the dual agency.
After a seller's listing agreement with ABC Realty expires, what restrictions exist if the seller decides to
list with a different agency and ABC Realty has an interested buyer? - correct answer
ABC Realty may represent the buyer but may not disclose any information about offers made on the
property when it was listed with ABC Realty.
A real estate salesperson refers buyers to a particular lender knowing that the lender pays a fee for
referrals. Which is TRUE? - correct answer The salesperson has acted injudiciously.
For which of the following actions must an agency agreement exist between a buyer and a real estate
office? - correct answer To negotiate a reasonable price on a property
Which of the following is TRUE of buyer-brokerage contracts in Michigan? - correct answer
The contract must be in writing to be enforceable.
John has started taking real estate re-licensing classes and agrees to help his neighbor sell her house for
3% commission. The house is sold and closing takes place 1 day after John receives his salesperson's
license, but the neighbor refuses to pay the commission. Can John sue to recover the commission fee? -
correct answer No, Michigan law prohibits lawsuits to collect commissions unless the
injured party is a licensed broker whose license was in effect at the time the agreement was made.
Which of the following type of agency relationship is NOT recognized in Michigan? - correct answer
Transaction brokerage agency
, According to the Michigan Board of Real Estate Brokers and Salespersons, which of the following is NOT
a required element of a listing agreement? - correct answer Qualified expert's report
of property condition
In which of the following circumstances is a seller's disclosure statement NOT required? - correct answer
If the property is a commercial property.
The seller's disclosure statement should be delivered to the buyer before which of the following events?
- correct answer before the seller accepts the offer
To whom may a real estate agent divulge confidential information about a client? - correct answer
To the supervising broker for the purposes of obtaining advice or assistance for the client.
Which of the following is true regarding disclosure of deaths in the state of Michigan? - correct answer
AIDS-related deaths may not be disclosed.
Which of the following conditions applies to a salesperson who is interested in purchasing a property
listed with his or her supervising broker? - correct answer The salesperson must
inform the property owner, in writing, that he or she is a licensee in order to make an offer on the
property.
A buyer bought a house which was found to have a leaky basement during spring rainstorms a few
months later. The sellers had discussed the basement leaks with the listing agent but they agreed not to
divulge those details to prospective buyers. The broker claims the seller did not specifically ask about
the basement. Which of the following options is open to the buyer? - correct answer
The buyer can sue the broker for nondisclosure of necessary information on the condition of a property.
At which point in proceedings would an agent be considered particularly remiss in their responsibilities if
a written disclosure regarding agency relationships had not yet been distributed to a prospective buyer?
- correct answer At the closing table
The seller accepts an offer from the buyer before providing the seller's disclosure statement. Which of
the following actions may the buyer take? - correct answer The buyer may withdraw
from proceedings any time prior to the closing.
After accepting an offer in writing, if a seller withdraws acceptance and cancels the transaction, which of
the following is TRUE? - correct answer The broker, having facilitated a written
acceptance of an offer, is entitled to compensation and may sue the seller for the commission.
A realty company has entered agency agreements with both the sellers and the buyers in the
transaction of a property. Is this allowable? - correct answer Yes, as long as both
parties agree in writing to the dual agency.
After a seller's listing agreement with ABC Realty expires, what restrictions exist if the seller decides to
list with a different agency and ABC Realty has an interested buyer? - correct answer
ABC Realty may represent the buyer but may not disclose any information about offers made on the
property when it was listed with ABC Realty.
A real estate salesperson refers buyers to a particular lender knowing that the lender pays a fee for
referrals. Which is TRUE? - correct answer The salesperson has acted injudiciously.
For which of the following actions must an agency agreement exist between a buyer and a real estate
office? - correct answer To negotiate a reasonable price on a property
Which of the following is TRUE of buyer-brokerage contracts in Michigan? - correct answer
The contract must be in writing to be enforceable.
John has started taking real estate re-licensing classes and agrees to help his neighbor sell her house for
3% commission. The house is sold and closing takes place 1 day after John receives his salesperson's
license, but the neighbor refuses to pay the commission. Can John sue to recover the commission fee? -
correct answer No, Michigan law prohibits lawsuits to collect commissions unless the
injured party is a licensed broker whose license was in effect at the time the agreement was made.
Which of the following type of agency relationship is NOT recognized in Michigan? - correct answer
Transaction brokerage agency
, According to the Michigan Board of Real Estate Brokers and Salespersons, which of the following is NOT
a required element of a listing agreement? - correct answer Qualified expert's report
of property condition
In which of the following circumstances is a seller's disclosure statement NOT required? - correct answer
If the property is a commercial property.
The seller's disclosure statement should be delivered to the buyer before which of the following events?
- correct answer before the seller accepts the offer
To whom may a real estate agent divulge confidential information about a client? - correct answer
To the supervising broker for the purposes of obtaining advice or assistance for the client.
Which of the following is true regarding disclosure of deaths in the state of Michigan? - correct answer
AIDS-related deaths may not be disclosed.
Which of the following conditions applies to a salesperson who is interested in purchasing a property
listed with his or her supervising broker? - correct answer The salesperson must
inform the property owner, in writing, that he or she is a licensee in order to make an offer on the
property.
A buyer bought a house which was found to have a leaky basement during spring rainstorms a few
months later. The sellers had discussed the basement leaks with the listing agent but they agreed not to
divulge those details to prospective buyers. The broker claims the seller did not specifically ask about
the basement. Which of the following options is open to the buyer? - correct answer
The buyer can sue the broker for nondisclosure of necessary information on the condition of a property.
At which point in proceedings would an agent be considered particularly remiss in their responsibilities if
a written disclosure regarding agency relationships had not yet been distributed to a prospective buyer?
- correct answer At the closing table
The seller accepts an offer from the buyer before providing the seller's disclosure statement. Which of
the following actions may the buyer take? - correct answer The buyer may withdraw
from proceedings any time prior to the closing.
